- Nifty closed almost flat on the last day of the year with annual returns on the index of about 4%. This may not look too impressive but it really good considering the -16% returns for the US markets and -13% for Germany DAX.
- The weak core sector growth for the month of November may weigh on the markets. Core sector growth came in at a 16-month low of 3.5% as cement and electricity generation came in much weaker than expected.
- FIIs were net sellers to the tune of Rs.(-327) crores while DFIs 322 crore on Monday. We will have to await specific allocations for the New Year to understand how EM allocations work out.
- There was a semblance of bounce across Asia and Europe but the real worry was the full year losses markets like the US and Europe. The big bet is now on the US-China talks making some solid progress before the 3 month cooling period ends.
- With the Nifty just 150 points shy of the 11,000 mark, there is caution building up at higher levels. Traders are advised to play cautiously and also to hedge their portfolios closer to the 11,000 mark on the Nifty
- With the steel stocks continuing to expand capacity and a rapidly expanding market, we see JSW Steel as a good stock to accumulate around the Rs.305 levels with a target of Rs.350 in one quarter time frame.
- We see deep value in IOCL around the Rs.138 levels. The stock is likely to benefit from stable and low oil prices, which could actually prop up its refining margins. Also the dividend yields are quite attractive for the stock.
- As a New Year dawns, the focus will be see if the 11,000 mark of the Nifty sustains. We see some resistance before global cues really turn supportive.
